Did you know that 55% of small businesses have experienced a data breach and that 53% have had multiple breaches?
Technology and the internet in particular is a crucial part of how organizations do business these days. While these technologies have greatly benefited businesses around the world, can be exploited by iniquitous people to do damage. Hackers and cyber-crime rings are using this technology to target organizations large and small for cyberattacks.
Hackers and cyber criminals around the world are getting classier at evading business security measures and gaining access to sensitive information. With recent status hacks on the likes of Equifax, Marriott International Hotels, and even Facebook in 2019, nobody is completely protected. If these companies, who spend millions each year on cyber security, can be hacked, then so even SMEs can.
Small and medium-sized enterprises (SMEs) are among the least mature and most vulnerable in terms of their cybersecurity risk and resilience. A data breach can damage more than just small-business computer system – it also can damage the reputation and put customers and/or employees at risk. That’s why cyber insurance are often a sensible precaution for any size business.
Cyber insurance is an insurance product designed to provide businesses hedge against the potentially distressing effects of cybercrimes like malware, ransomware, distributed denial-of-service (DDoS) attacks, or the other method used to compromise a network and sensitive data. Also mentioned to as cyber risk insurance or cybersecurity insurance, these products are personalized to assist a company mitigate specific risks.
Most cyber insurance plans cover a broad range of cyber risk losses that may unexpectedly arise from cyberattacks. In addition, some plans offers coverage for physical damage to hardware or coverage for business income loss. Plans can be personalized depending on your current business security posture.
To conclude there is no avoiding cyber risks entirely, but the decisions regarding the cyber insurance make today will determine the business, if the next major attack means financial chaos or just a bad day at the office.
Prof. Ramya H P